On trade liberalization and transboundary pollution
We examine the impact of freer trade on equilibrium pollution tax and welfare when markets are imperfectly competitive and pollution is transboundary. In the symmetric case, bilateral tariff reduction (i) strengthens environmental protection if and only if pollution is sufficiently harmful, and (ii) decreases welfare in the neighbourhood of free trade.
Volume (Year): 29 (2009)
Issue (Month): 4 ()
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- Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001.
"Is Free Trade Good for the Environment?,"
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- Josh Ederington & Jenny Minier, 2003.
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- Krutilla, Kerry, 1991. "Environmental regulation in an open economy," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 127-142, March.
- Kennedy Peter W., 1994. "Equilibrium Pollution Taxes in Open Economies with Imperfect Competition," Journal of Environmental Economics and Management, Elsevier, vol. 27(1), pages 49-63, July.
- Burguet, Roberto & Sempere, Jaume, 2003. "Trade liberalization, environmental policy, and welfare," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 25-37, July.
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